Cash App from Square Inc. releases its Q3 reports and has recorded exponential growth in Bitcoin revenues compared to last year.
Amid increasing BTC prices, Bitcoin has contributed more than 70% to the overall growth figures for this quarter.
Bitcoin dominates the Q3 reports
The 3’rd quarter report of Square is out and it has shown that Cash App’s Bitcoin Revenue has reached a new high after recording $1.63 billion. The increase in the Bitcoin revenue over the last year the same quarter is up by 1,100% which is massive.
Cash App is a major cash cow for Square
Cash App is a peer-to-peer payment service owned by Square Inc. a leader in the financial technology industry. Cash App facilitates the easy and cheap purchase of bitcoin. Cash App is only one part of the aggregate Square’s business offerings that include software and Point-of-sale hardware for businesses of all sizes and scales. The Q3 report also adds that the premium cryptocurrency has also dominated all the other revenue sources in the report for the payment service company. Bitcoin comprises 80% of Cash App’s total revenue in Q3, 2020. The report says that for the third quarter, Cash App generated total revenue of $2 million. The revenue generated from other sources not including Bitcoin totals $453 million which is 22% of the total revenue generated with the remaining going to Bitcoin.
Square was much in the news last month when it reportedly invested directly in Bitcoin.
“Square believes cryptocurrency is an instrument of economic empowerment and provides a way to participate in a global monetary system, which aligns with the company’s purpose.”
Auto-invest tool a major catalyst
Square purchased Bitcoin worth $50 million and at present, the worth is $74 million with Bitcoin surpassing the $15000 mark. One of the major catalysts for Bitcoin-generated revenue is the app’s recently released Auto-Invest tools that allow users to indulge in recurring daily or monthly purchases of BTC or any other stock. As per the Q3 report, Bitcoin revenue contributed $32 million in gross profit which is 15 times from the previous year’s profit of $2.1 million, a figure that seems less significant after what it has performed this quarter.
Square’s stock shows fundamental growth
Square’s stock price also has shown confidence with a 6% increase after these financial results were out during after-hours. It is now close to its previous high of $190 which was witnessed earlier this month.
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